Navigating the 1-4 Contract
2023 Independence Title Education
• Always calendar
• Always end at midnight unless otherwise stated. • Effective date is 0 next day is 1.
Presented by the Education Team at Independence Title. TREC Provider# 403
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• Confirm the seller’s name with the appraisal district
• Confirm the seller is the real seller
• Confirm buyer name with driver’s license
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How is it determined if it stays?
• The courts use the “TRIPLE A” method:
üAnnexation – can it be removed without causing damage?
üAdaptation – is it customized for the property or is it standard?
üAgreement – what was their intention?
“We have to keep Grandma’s chandelier!!!”
§ Listing agents be proactive
§ Use paragraph 2D, Exclusions, in the contract
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Methods of Payment
Zoccam
Cashier's Check
Wire Transfer
Personal Check
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• Details about the title policy and who will pay for it.
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• Details about delivery of the title commitment.
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• Delivery of the existing survey and T-47 affidavit or T-47.1 declaration.
• Use (2) or (3) when a new survey is needed.
• Use if the buyer has a specific need for the property example shortterm rental.
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Use when a buyer wants to perform hydrostatic testing.
• Only a licensed plumber
• Establishes authorization by the seller
• Allocates risk of damages to the property
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12. SETTLEMENT AND OTHER EXPENSES:
A The following expenses must be paid at or prior to closing:
1. Seller shall pay the following expenses (Seller's Expenses):
a) releases of existing liens, including prepayment penalties and recording fees; release of Seller’s loan liability; tax statements or certificates; preparation of deed; one- half of escrow fee; brokerage fees that Seller has agreed to pay; and other expenses payable by Seller under this contract;
b) the following amount to be applied to brokerage fees that Buyer has agreed to pay q $ or q % of the Sales Price (check one box only); and c) an amount not to exceed $
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